I have many people coming up to me saying ‘I have £50,000 to invest in property – what should I do and where’. If that’s the question you would like answered, then read on!
| Investing your money in buy to let can work, but be warned, it hasn’t been a successful investment for everyone. One property I looked at the other day was sold in 2000 for £133,000 and sold in 2013 – thirteen years later – for £105,000. So the idea that property prices will always go up in the 15-20 year time frame it has in the past just isn’t always true. | XXX |  |
So, the first thing to do if you want to get into buy to let is to understand it’s not about bricks and mortar, it’s about making money. You need to buy a property at a discount, you need to make sure you can rent it for the next 15-20 years at a profit and most importantly you need to understand how you are going to cash in your investment. Are you going to sell up or are you going to take the income from rent having paid off the mortgage?
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XXX | Secondly you need to work out where your money will give you the best return. A brand new flat in a city centre might look nice, but if you can get an existing house nearby for the same amount of money, with no service charges attached and the same rental income – the house is likely to be a better option! |
Finally it’s vital you make sure you have considered all types of investment and compared the returns. For some it might be better to put your money in a property fund or a pension, for others a buy to let deal might deliver the returns you want – but are you ready for all the hassle that goes with it?
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